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Soft futures mixed; Coffee, sugar trade near multi-year lows

Published 05/30/2013, 07:41 AM
Investing.com - U.S. soft futures were mixed during U.S. morning trade on Thursday, with coffee and sugar prices continued to trade near multi-year lows amid ongoing concerns over ample global supplies.

On the ICE Futures U.S. Exchange, Arabica coffee for July delivery traded at USD1.2745 a pound, down 0.4% on the day.

The July contract held in a range between USD1.2733 a pound, the daily low and a session high of USD1.2828 a pound.

The July coffee contract fell to USD1.2585 a pound on May 28, the lowest level since October 2009.

The coffee market has been under heavy selling pressure in recent weeks as traders eyed a huge harvest in top grower Brazil.

Some technical selling also weighed after prices broke below key support levels, triggering a flurry of automatic sell orders amid bearish chart signals.

Meanwhile, sugar futures for July delivery traded at USD0.1672 a pound, up 0.3% on the day.

The July contract was stuck in a range between USD0.1669 a pound, the daily low and a session high of USD0.1678 a pound.

The July contract fell to a two-year low of USD0.1657 a pound on May 23.

The sweetener has been under heavy selling pressure in recent months as farmers in Brazil started to accelerate harvesting of the nation's sugar crops.

Brazil is the world's largest sugar producer and exporter, with the U.S. Department of Agriculture estimating the nation accounts for nearly 20% of global production and 39% of global sugar exports.

Elsewhere, cotton futures for July delivery traded at USD0.8108 a pound, up 0.5% on the day.

The July contract traded in a range between USD0.8067 a pound, the daily low and a session high of USD0.8172 a pound.

Cotton prices fell to USD0.8062 a pound on Wednesday, the lowest level since February 15, amid easing concerns over U.S. crop prospects.

According to the U.S. Department of Agriculture, nearly 59% of the U.S. cotton crop was planted as of last week, up from 39% in the preceding week.

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